The state budget went up by $1.6B again this year. Government has enough money already.
Coloradans may face 4 spending questions this year. Will new nicotine tax measure overload the ballot?
The proposal, announced Wednesday by Gov. Jared Polis and Democratic state lawmakers, would set a uniform nicotine tax at 62 percent. That would lift the taxes on a package of cigarettes to $2.49 from 84 cents.
How those efforts could interact remains unknown, but discussion is already underway about the potential consequences of asking voters to make so many revenue-generating decisions at once and whether questions might counteract each other.
Also top of mind: Colorado voters in 2018 rejected tax increases aimed at paying for transportation and education, two of the most cash-poor and motivating issues in the state. So the question is, what’s different now?
“Not only are there the statewide (revenue-increase questions), but once you get into the municipalities, there are going to be even more,” said Courtney Sievers, pollster with the Republican firm Magellan Strategies.
TABOR opponents, bored with chipping away at the law’s foundations, have broken out the chainsaws. On the one hand, legislative Democrats are ignoring the plain language of TABOR and unilaterally enacting a universal income tax increase without a statewide vote, by calling it a “fee.”
And on the other hand, they are proposing a ballot referendum to waive the law’s taxation restrictions. According to TABOR, any increase in general revenue above the previous year’s plus inflation and population increase must be refunded to the people. House Bill 19-1257 would remove that restriction, allowing the state to keep any and all tax revenue, forever.
In return, the money that was kept would go to transportation, transit, public education, and higher education. Theoretically, anyway. Such a deal might seem to have some superficial appeal to Colorado voters, but recent experience strongly suggests this may be a harder sell than proponents expect.
We don’t know where Referendum C dollars go
HB 1257 is Referendum C on steroids. In 2005, voters approved a temporary “time-out” from TABOR’s spending restrictions, allowing the baseline to grow at the inflation plus population formula regardless of what revenues actually did. Referendum C has allowed the state to keep about $17 billion, including over $1.2 billion in the last fiscal year alone.
The Reagan Club of Colorado was glad to host Penn Pfiffner at April’s meeting to talk about the Taxpayer’s Bill of Rights. TABOR has kept Colorado fiscally healthy, but look for it to come under assault by the Democrats this year. Learn more about the work that The TABOR Foundation and TABOR Committee do at https://thetaborfoundation.org/.
Colorado lawmakers last week approved a $32.5 billion budget to fund the government, but not everyone is cheering.
The new budget includes $300 million for road funding, which took much negotiating between majority Democrats and minority Republicans. It also includes $175 million for full-day kindergarten, less than Gov. Jared Polis requested, and a 3 percent raise for state employees.
Budget writers also had to pull $40 million from some state reserve funds.
TABOR Repeal Bill Passes Colorado House of Representatives without Single Republican Vote
House Democrats’ attempt to permanently pocket taxpayer refunds advances on party-line vote
DENVER, April 17, 2019 – Yesterday, Democrats in the Colorado House of Representatives voted to pass House Bill 1257, a measure that would require state taxpayers to permanently forego tax refunds in any year in which they overpay the state.
“Colorado Democrats claim that their proposed theft of taxpayers would fund critical services like education and transportation, but Speaker K.C. Becker admitted in a committee hearing that they couldn’t provide any assurances as to how this supposed ‘excess’ revenue would be allocated in the future,” said Amy Oliver Cooke, Independence Institute Executive Vice President and TABORYes coalition member. “This isn’t even the government’s money in the first place. It’s money that hardworking Coloradans overpaid into the system, as codified by our Taxpayer’s Bill of Rights. Continue reading →
Vote NO on this attack on your Colorado Taxpayer’s Bill of Rights
TABOR exemption question to be on fall ballot
CHARLES ASHBY
Voters would be asked this fall if the state should be able to retain surplus revenue over what the Taxpayer’s Bill of Rights allows under a bill that won final approval in the Colorado House on Tuesday.
Under House Bill 1257 and a companion measure, HB1258, all of the taxes and fees the state collects over the revenue cap under TABOR would be evenly divided between transportation, public schools and higher education.
TABOR limits growth in revenue collections year over year based on inflation and population growth.
“In the last 27 years since TABOR was voted into the Constitution, our state population has increased by 50 percent,” said House Speaker KC Becker, D-Boulder, who introduced the bill with Rep. Julie McCluskie, a Democrat whose district includes the eastern half of Delta County.
It’s been nearly a year since Colorado lawmakers first discussed the possibility of legal sports betting in public, and the time for action has come.
This week, casino operators had the chance to offer feedback on preliminary language for a new CO sports betting bill. Reviewed by Legal Sports Report, the draft being circulated includes provisions for both physical sportsbooks and statewide mobile betting under a manageable tax structure.
Considering the bill has yet to be introduced, however, time is running a bit tight. The legislature adjourns for the year on May 3.
The Colorado House on Tuesday passed two bills that would ask voters if the state could keep their taxpayer refunds provided by the Taxpayer’s Bill of Rights (TABOR), sending the bills to the Senate for consideration.
House Bill 1257 is a referendum asking voters to allow the state to keep and spend excess revenues that would otherwise be refunded to taxpayers. If approved, the referendum would be on the November ballot.
NATELSON: BRITAIN ISN’T THE ONLY PLACE WHERE ELITES TRY TO UNDO BALLOT MEASURES
Robert Natelson | Senior Fellow, Independence Institute
When British citizens voted to leave the European Union, I doubted the British political establishment would allow that decision to stand. Today that establishment is doing everything it can to undermine the Brexit referendum.
Such conduct is not limited to Britain. In the United States also, government officials have a long history of sabotaging ballot measures they don’t like.
The most common method is judicial action. For example, in 1996, the U.S. Supreme Court voided a state ballot measure deciding that sexual orientation was not a special civil rights category. This measure required only that state law treat sexual preferences as it treats most personal characteristics — other preferences, height, weight, allergies, perceived attractiveness, and so forth. Yet SCOTUS upended it, ruling it violated the Constitution’s Equal Protection Clause.
Similarly, in 2015 SCOTUS reversed 30 statewide votes reaffirming — generally by landslide margins — the traditional definition of marriage.
Hospital fees that have generated billions of dollars in Colorado are legal and do not violate Colorado’s Taxpayers Bill of Rights, according to a Denver District Court ruling.
The Wednesday ruling found that the Hospital Provider Fee and the subsequent Healthcare Affordability and Sustainability Fee are “fees, and not taxes, and therefore are not subject to TABOR,” according to a Colorado Department of Health Care Policy and Financing (HCPF) news release.
The ruling is in favor of the health care policy department and the Colorado Department of the Treasury.
In 2015, the TABOR Foundation filed a lawsuit challenging the constitutionality of the fees. The hospital provider fee is a charge imposed on hospital stays that other states refer to as a “bed tax.”